Australia’s Anchorage hits final close on third fund

The turnaround specialist held its first and final close on Anchorage Capital Partners III on $266m, after less than a year in market.

Anchorage Capital Partners, the Sydney-based mid-market firm, has a held a A$350 million ($266 million; €224 million) first and final close on its third fund, Private Equity International has learned.

The firm began fundraising for Anchorage Capital Partners III early this year and had a healthy re-up rate, receiving roughly half of commitments from Australian institutions and the remaining half from overseas investors, two sources with knowledge of the matter told PEI.

Fund III is larger than its predecessor which closed on A$250 million in 2013 and is currently being invested. Meanwhile its debut fund, the A$200 million 2008-vintage Fund I is fully deployed.

Anchorage seeks control investments in underperforming businesses in Australia, New Zealand or South-East Asia with an enterprise value of between A$25 million and A$250 million. It invests across all sectors except technology, mining and property, it said on its website.

The firm’s current portfolio includes facility maintenance provider TJS Services, childcare operator Affinity Education Group and consumer brands group Brands Collective.

Aberdeen Standard Investments, HarbourVest Partners, Macquarie Group and Boston Foundation have backed the firm’s previous funds, according to PEI data.

Australia-focused private equity funds raised A$2.03 billion in fiscal 2017, according to the Australia Venture Capital and Private Equity Association. CHAMP Private Equity closed on closed CHAMP IV on A$735 million in May this year, while Allegro Funds is on track to hold a A$390 million final close for its latest vehicle and co-investment sidecar. Quadrant is also eyeing a December final close for its ninth vehicle which is targeting A$1 billion.

Anchorage declined to comment on fundraising.